EXP8-5 (Detailed General Ledger or General Ledger-Subsidiary Ledger Entries; Statements) The Leslie Independent School District (LISD) services all of its long-term debt through a single Debt Service Fund. The LISD DSF balance sheet at December 31, 20X4, appeared as follows: Leslie Independent School District Debt Service Fund Balance Sheet December 31, 20X4 Assets Cash $220.000 Investments 670,000 Accrued interest receivable 10.000 $900,000 Liabilities and Fund Balance Liabilities: Matured interest payable $101,500 Matured serial bonds payable 50,000 Accrued fiscal agent fees payable 1,005 $152,505 Fund Balance: Reserved for term bond principal 315,285 Reserved for serial bond service assurance 350,000 Unreserved 665,285 82.210 747,495 $900,000 .... 1. The LISD adopted the following DSF budget for its 20X5 calendar fiscal year: Appropriations: (1) Serial bonds (8%, $2,500,000 unmatured at 1/1/X5): (a) 7/5/X5-Principal $ 50,000 Interest 100,000 Fiscal agent fees 1,000 (b) 1/5/X6-Principal 50,000 Interest 98,000 Fiscal agent fees 995 $151,000 The 1/5/X5 debt service payment was accrued at 12/31/X4 because dedicated resources were provided for that payment during 20X4. 148,995 299.995 Problems 337 (2) Term bonds (6%. $1,000,000 unmatured at 1/1/X5): (a) 4/15/X5 --Interest (b) 10/15/X5 - Interest 30.000 30,000 60.000 term bond indenture, The board also approved a $21.019 addition to the sinking fund Reserve for Term Bond Principal as required by the (3) Capital lease (7%, $400.000 book value at 1/1/X$): Annual payment (including interest) due 3/25/X5 Total Appropriations 38,986 $398,981 Required Financing: Appropriations $398,981 21,019 $420,000 Addition to term bond sinking fund Authorized Financing Sources: Estimated property tax revenues Estimated interest revenues Authorized transfer from General Fund . $250,000 52,000 118,000 $420,000 2. All debt service payment transactions occurred during 20x5 as they were budgeted and scheduled. Investments were liquidated-in $1,000 blocks--the day before cash was required; the cash balance was never permitted to be less than $5,000. 3. The General Fund transfer was made on 2/12/X5 and was invested (at par); the sinking fund Reserve for Term Bond Principal was also adjusted on that date. 4. Investment earnings during 20X5 were $54,000, including $15,000 of accrued interest receivable at 12/31/X5. The ending cash balance at 12/31/X5 was $13,509. (Record all investment earnings transactions and events at 12/31/X5.) 5. Property taxes for the year, all received on 5/8/X5, totaled $256,000. Required (a) Prepare the summary journal entries necessary to record these transactions and events in the detailed General Ledger accounts or in the General Ledger, Revenues Ledger, and Expenditures Ledger of the Leslie Independent School District during 20X5, including clos- ing entries. Key the entries by date. (b) Prepare a balance sheet at 12/31/20X5 and a Statement of Revenues, Expenditures, and Changes in Fund Balances for the year then ended for the LISD Debt Service Fund